Tips When Leasing a Commercial Property

Commercial property leasing is similar to residential leasing since you need to inspect the property well. You need to draw the necessary paperwork and sign them. You need to check whether your finances are sufficient and if not, what are loaning options you can get from the bank. You also need to get property insurance for your peace of mind.

However, what separates commercial real estate from is the fact that you need to check whether the property you want to lease is located within the correct business zone and if it has proper planning and building permits for commercial operation. If you are looking for a commercial property for lease, zoning, planning and permits are 3 factors you need to look for. 

For instance, you are a business owner and you plan on leasing a space in a shopping center. As a potential tenant, what are examples of good questions you need to ask a landlord?

1. What kinds of businesses are leasing in the shopping center? Especially if it is a large shopping center, you need to know what your competitive advantage is should you decide to lease a space. If the shopping center houses many businesses similar to yours, then you have to think about your decision to lease well. You might not be able to survive the competition.
2. What are the facilities associated with the lease? Aside from having a clear identification of your leased area, ask if there are associated facilities that comes with the lease such as parking space, stock room use and storage.
3. What are the trading hours of the shopping center? It is logical to lease a space in a shopping centre that matches your operating hours. A 24-hour business is definitely not a match with a shopping centre that operates form 8 in the morning to 8 in the evening. Negotiate with the landlord in such instances.
4. Are there plans to renovate the shopping center soon? Any improvements in the facade or within the premises can impact your operations. As a potential tenant, you are entitled to know what plans they have as far as site development goes. 

It is equally important to know how the law can protect you whether you are a tenant or a landlord. Again, taking from the viewpoint of a business owner planning to lease a retail space. A landlord also has a right to take action if the tenant suddenly abandons the leased premises without notification and without paying rent. The retail lease signed by both parties is a legal document and is binding to all those who are signed in.

If you encounter issues and discrepancies in your lease, take a proactive step by addressing the issue on your own. Speak directly, politely and calmly with your landlord. Try to negotiate your terms and aim for a win-win outcome as much as possible. Request the help of your commercial real estate agent if ever you hired one to help you with issues on your lease.